Consider getting professional liability insurance for lawyers if you want to make sure that you don’t lose a lot of money when a lawsuit is brought against you. Lawyers face risk each and every day when they represent clients, and these risks are something that could have a serious effect on one’s career. If someone is not pleased by your services or the outcome of your case, then you could face a lawsuit that could cost you a lot of money. To avoid dealing with this on your own, get a good professional liability insurance policy.
As a lawyer, you should be aware of the risks that are associated with dealing with clients all of the time. Although you might think that you are doing everything correctly and on the up and up, sometimes there are going to be things that slip your mind. Even the best lawyers make mistakes, and you shouldn’t be forced to pay for these mistakes on your own. If you get some good professional liability insurance, then you’re going to have someone backing you up no matter what.
Making Policy Limits Decisions
When you have decided to get some professional liability insurance for lawyers, you will need to make a number of important decisions regarding your coverage. Once of the most important decisions that needs to be made is what the limit of your coverage is going to have. There are a lot of things to take into account before you make this final choice, so you need to be prepared to take your time to review all of the elements before deciding on anything for your professional liability insurance.
As you consider what your policy limits for liability insurance are going to be, then you’re going to need to think about getting enough coverage that will cover legal fees as well as damages. A lot of lawyers don’t really consider the costs of legal fees when they are getting coverage but these can be big expenses. Even if you are going to represent yourself, this is going to take up time that you could be spending with other clients, and you could stand to lose a lot of money this way. If you end up hiring another lawyer, then this could also be expensive. You need enough professional liability insurance coverage to handle it.
In addition to paying for your legal fees, you do need to think about damages when setting a limit for your professional liability insurance for lawyers. Although legal fees can be a big expense, damages can be an even greater one. Even if you feel that you have done nothing wrong, you could still end up being found liable and you might have to pay out tons of money. When you don’t have enough professional liability insurance coverage, then you may be stuck in a bad financial spot. You can avoid this by getting the right level of lawyers coverage.
Another thing that you should consider when trying to decide on coverage levels is how many lawyers your policy will be protecting. If you are trying to get professional liability insurance for lawyers in a firm that employs several attorneys, then you’re going to need to get a lot of coverage. With that many lawyers around, there is going to be a lot of risk and you’ll need professional liability insurance coverage to match up with this risk. Think about how many employees you want to protect before purchasing a policy.
Understanding Policy Exclusions
When you purchase insurance, you need to be aware that there are some instances which will not be covered under your policy. If you intentionally commit a fraudulent, dishonest, criminal, or malicious act, then your professional liability insurance for lawyers is not going to cover you. You will be left on your own to deal with these charges, and you will have to pay for everything out of your own pocket. As such, it’s important that you exercise the greatest care when you are dealing with your clients and always be honest and forthright about everything involved in your practice.
A lot of providers who offer professional liability insurance for lawyers do not give any coverage for claims that involve discrimination. In most cases, professional liability insurance providers will make the claim that discrimination has nothing to do with the performance of legal services. When this is the case, you are not going to be covered in a case that is based on discrimination. If you want this kind of coverage, you’ll need to speak with your provider and see if there is any way to get it added to your policy.